• Central Petroleum and partners enter binding LOI with Power and Water Corporation
• Accelerated 4-well drilling program at Mereenie and Palm Valley fields
• Long-term gas supply agreements for up to 25.5 PJ (Central share) through 2034

Central Petroleum Limited (ASX: CTP) and its Mereenie and Palm Valley Joint Venture partners have entered into a binding Letter of Intent (LOI) with the Northern Territory's Power and Water Corporation (PWC) to support the immediate commencement of early works for an accelerated drilling program of four new wells, and to promptly document and execute gas supply agreements consistent with conditional gas supply term sheets. The term sheets cover uncontracted firm gas production from Mereenie and Palm Valley of up to 25.5 PJ (Central share) to be sold through the end of 2034. The JVs will immediately begin early works for the four-well drilling program, which will involve two wells at Mereenie and two at Palm Valley, with drilling targeted to commence in mid-2026. The gas supply term sheets are non-binding and conditional, requiring final internal approvals, but the intention is for the parties to formalise and execute binding Gas Sale Agreements by 20 February 2026. The arrangements are designed to quickly deliver significant new gas volumes to the Northern Territory and enhance gas supply security for customers throughout the region. Central Petroleum and its partners have recent experience in delivering accelerated drilling programs, and the proposed GSAs would underwrite the drilling program and provide Central with a reliable government-backed income stream well into the next decade.

The gas supply term sheets cover uncontracted firm gas production from the Mereenie and Palm Valley fields of up to 25.5 PJ (Central share) through the end of 2034.

The intended supply arrangements are designed to quickly deliver significant new gas volumes to the Northern Territory, while also enhancing gas supply security for customers throughout the region. Preparations for the new wells are already well-advanced, with key approvals in place or underway, and the JVs can target mid-2026 for the commencement of drilling.